We carry out a risk mapping of sustainability-related risks within our existing suppliers. By defining the risk levels, we are able to focus on the suppliers with the highest potential risks in their operations.
For the risk mapping, we utilize a Human Rights Dataset to identify the risk countries related to the categories Human Security, Labor Rights and Protection, Civil and Political Rights, Access to Remedy and Development and Environment. In addition, we also take into account the supplier type and spend. Based on these assessments, we decide if there is a need for third-party or internal sustainability supplier audits.
Screening new suppliers is included in procurement's ongoing processes, and our target is to evaluate the majority of new suppliers in higher-risk countries against our sustainability criteria.
Based on the sustainability risk assessment of the new supplier, procurement decides on the need for an in-depth audit and further actions.
Also take a look at: Sustainability Criteria for Suppliers
Annually, Metso conducts 15 third-party sustainability supplier audits together with external auditing partner in higher-risk countries (e.g. China, India, Turkey and Brazil). Metso’s thirdparty audits cover many aspects of sustainability, including HSE, product safety, labor and other human rights, and risk management. We have also started to conduct internal sustainability supplier audits, where Metso Procurement and Quality Assurance make on-site visits and check the sustainability practices and performance of our suppliers.
To improve our suppliers' sustainability performance, after each sustainability supplier audit, we agree on corrective action plans together with the supplier. Suppliers are required to provide Metso with evidence of the corrective actions that have been implemented and are subjected to a re-audit, where necessary. The focus is to increase the sustainability knowledge of our procurement function so that it has the ability to control the potential corrective actions comprehensively.